Rule 30 of CGST rules 2017
Suryadeep Pathak (CA Final) (43 Points)
14 September 2018
what is the meaning of "COST OF PRODUCTION OR MANUFACTUR"" and how to calculate it ???
4 Replies
Rohit Tibrewal
(Student & Senior Accountant)
(3193 Points)
Replied 14 September 2018
What constitutes Cost of Production?
Cost of production shall consist of the following:
Material consumed
Direct wages and salaries
Direct expenses
Works overheads
Quality control cost
Research and Development Costs incurred for development or improvement of the existing product
Packing Cost
Administrative overheads related to production
Products transferred/dispatched, duly packed for captive consumption(Captive consumption means the consumption of goods manufactured in another division of the same organization, or anything related thereto)
To derive cost of production of goods dispatched/used for captive consumption; adjustments for stock of Work-in-process, finished goods, recoveries of sales of scrap, wastage etc. shall be made. Material cost shall be net of discounts, input tax credit, GST (if any), etc
Cost of production shall consist of the following:
Material consumed
Direct wages and salaries
Direct expenses
Works overheads
Quality control cost
Research and Development Costs incurred for development or improvement of the existing product
Packing Cost
Administrative overheads related to production
Products transferred/dispatched, duly packed for captive consumption(Captive consumption means the consumption of goods manufactured in another division of the same organization, or anything related thereto)
To derive cost of production of goods dispatched/used for captive consumption; adjustments for stock of Work-in-process, finished goods, recoveries of sales of scrap, wastage etc. shall be made. Material cost shall be net of discounts, input tax credit, GST (if any), etc
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 14 September 2018
Very Nice Mr Rohit Tibrewal.,
@ Suryadeep.,
Yes... I agreed to Mr Rohit Tibrewal.,
Just will be calculated as "Material Cost + Production Cost)
@ Suryadeep.,
Yes... I agreed to Mr Rohit Tibrewal.,
Just will be calculated as "Material Cost + Production Cost)
Rohit Tibrewal
(Student & Senior Accountant)
(3193 Points)
Replied 14 September 2018
Thank you 😀 @ Raja Sir
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